Source of this article: Times Finance Author: Zhou Jiabao
Picture source: Visual China
The number of confirmed cases of new crown related to Shenzhou International continues to increase.
On the evening of January 4, Ningbo officially announced the new crown epidemic situation. From 0:00 on January 1, 2022 to 20:00 on January 4, Ningbo reported a total of 26 confirmed cases. According to the trajectory announced that night, Case No. 24 and Case No. 26 were both employees of Shenzhou International’s Ningbo factory and were both discovered at a centralized isolation point.
So far, including the first confirmed case, 23 of the 26 cases confirmed in this round of Ningbo epidemic have come from Shenzhou International.
At present, the virus tracing work of this round of epidemic in Beilun District, Ningbo City has not yet been completed, but through comparative analysis, the virus strain (evolutionary branch of Delta AY.57 strain) is genetically similar to cases recently discovered in Vietnam . At the same time, expert judgment does not rule out the possibility of "material-to-human transmission".
Many people speculate that this may be related to the trading of Shenzhou International’s raw materials and goods supply chain.
Times Finance learned that Shenzhou International is a foundry for internationally renowned brands such as Nike, Uniqlo , and Adidas. Its main production base is located in the Ningbo Economic and Technological Development Zone. It also has a fabric base in Xining Province, Vietnam, and a fabric base in Anqing, Anhui. There are garment factories in Ho Chi Minh City and Tay Ninh Province in Vietnam and Phnom Penh in Cambodia.
Obviously, after factories in Vietnam, Cambodia and other factories were shut down for a long time due to the epidemic, this well-known foundry is being tested by a new wave of epidemics.
"Every time there is an epidemic, factory delivery will be delayed, and our e-commerce is also affected." An unnamed children's clothing brand e-commerce operation manager said that as a partner of Shenzhou International, based on the experience of previous shutdowns due to epidemics , the shutdown of the Ningbo production base will inevitably affect delivery, which has not yet been reflected on the sales side, and is expected to affect orders in the spring and summer of 2022.
relies on epidemic subsidies to retain workers? Working from 7 a.m. to 10 a.m., many people quit after working for 3 months
In response to the epidemic, Shenzhou International previously issued an announcement stating that due to an epidemic in the area where the group’s Ningbo production base is located, in order to cooperate with the local government’s epidemic prevention measures, Ningbo City Some production areas in Beilun District are under lockdown. It is expected that the production base in this area will suspend production for a short period of time. The specific suspension time was not disclosed in the announcement.
html On January 2, the "Notice to All Shenzhou Employees" issued by Shenzhou International also pointed out that the company plans to provide a special allowance of 500 yuan per person per day for employees quarantined in centralized isolation points; employees quarantined at home and in company dormitories will receive a special allowance of 500 yuan per person per day. Each person will receive a special allowance of 250 yuan per day; front-line workers at the epidemic prevention headquarters will receive a special allowance of 1,000 yuan per person per day, which is expected to be paid after the year.In a previous conference call, Shenzhou International said, "The Ningbo base has 40,000 people as a whole, and the three departments (sealed and controlled areas) have a total of more than 3,000 people. Based on the suspension subsidies for everyone, the expenditure is about 12 million yuan/day. "According to a research report by Kaiyuan Securities, Shenzhou International is expected to spend more than 100 million yuan on epidemic prevention this time.
Although the subsidy policy has been called "generous" by netizens, behind the increasing number of cases related to Shenzhou International, there are also issues such as how much the factory's production capacity will be affected, how the health and safety of factory employees are ensured, and how long the case trajectory reflects the working hours of workers. Emerging one after another.
Previously, the itinerary of Case No. 1 (employee of Shenzhou International Factory) announced by the "Ningbo Release" was widely circulated on the Internet and resonated with netizens. The trajectory showed that the patient worked 13 of the 14 days from December 18 to 31 last year, and the working hours of 7 a.m. to 10 a.m. made many people lament the difficulty of working. "Seeing this lonely trajectory, I broke my guard. . "The trajectory of making a living, hope for a speedy recovery." Some netizens also criticized the working hours of Shenzhou International Factory.
According to Times Finance, there are vocational school graduates on Weibo who denounced working at Shenzhou International as "you can't see the sun at all." About 100 classmates who went to work together lasted for three months at most, and all of them left. "
A textile industry worker told Times Finance that most workers in the textile industry are paid a basic salary + piece rate, and the end of the year is the peak production season for rushing goods. "In a large factory like Shenzhou, the wages are definitely higher, and the working hours are also relatively high. Common, not considered exploitative."Data shows that during the epidemic, Shenzhou International increased per capita wages by 17%, and the average monthly wage at its Ningbo factory was 9,000-10,000 yuan.
The worker also analyzed Times Finance that the payment of Shenzhou epidemic subsidies this time may It’s not that simple. Because factory work is tiring, the working hours are long, and the technical requirements are high, many young people are unwilling to join the factory and would rather go for takeout. Textile and garment factories face recruitment difficulties every year, which makes many factories difficult to recruit. I have a headache. "This subsidy will be distributed after the Spring Festival, which may be equivalent to a red envelope for returning to work." "
Times Finance called Shenzhou International's Ningbo and Shanghai offices multiple times regarding related epidemic control and order issues, but no one answered. A staff member of Shenzhou International surnamed Chen responded to Times Finance: "The specific situation is unknown. Clearly, you know it from other sources. "
With this suspension of production, Shenzhou may lose 17.7 million pieces of ready-made garment production
Shenzhou International is one of the world's largest vertically integrated knitting manufacturers. The company was established in 1990 and was successfully listed in Hong Kong in 2005. It mainly produces OEM products. ) and outsourced design (ODM) operation. The Ningbo production base is mainly responsible for fabric production and also has a garment factory. As of the close of trading on January 4, Shenzhou International closed at HK$138.7 per share, with a total market value of 208.5 billion. Hong Kong dollar, price-to-earnings ratio of 36.44. In the past 17 years since its listing, Shenzhou International’s stock price has increased more than ten times, and the wealth of the head Ma Jianrong family has also increased. In the "2021 Hurun Rich List", the Ma Jianrong family ranks first with a wealth of 82 billion yuan. No. 60.
According to the 2020 financial report, Shenzhou International’s annual sales in 2020 reached 23.03 billion yuan, and the annual profit reached 5.08 billion yuan. The 2021 interim report showed that Shenzhou International achieved sales revenue of approximately 11.368 billion yuan during the period. It increased by approximately 11.1% compared with the same period last year, and achieved a gross profit of approximately 3.372 billion yuan, an increase of approximately 6.8% compared with the same period last year. Both revenue and gross profit were the highest in the same period in history.
Currently, Shenzhou International OEM products are distributed across mainland China. , Japan, the Asia-Pacific region and the European and American markets, internationally renowned brands such as Uniqlo, Nike, Adidas, Puma are Shenzhou International's main customers. In addition to the Ningbo production base, Shenzhou International also has Shenzhou Ankang, Shenzhou Vietnam, and Shenzhou International. As of the end of 2020, the annual ready-made garment production capacity reached 440 million pieces. According to Times Finance, Beilun District of Ningbo is currently divided into four areas: closed area, control area, prevention area, and safety area according to the epidemic prevention level. Normal life and production can basically be carried out in the safety zone and prevention zone, while production in the control zone and sealed zone will be suspended for a certain period of time. The garment manufacturing departments 3, 5 and 6 of Shenzhou International’s Ningbo production base are in the closed zone; garment manufacturing 1 Department, Department 2, Department 4, company headquarters, dyeing and finishing, and embroidery departments are control areas; weaving and some dyeing and finishing are in the control area
At present, all factories in Ningbo of Shenzhou International have temporarily suspended production and are in the control area. The three garment departments in the area are mainly involved in the production of Nike, Adidas and Puma products, accounting for 20% of the total production capacity, and are expected to be closed for 28 days; the three departments located in the control area also account for about 20% of the total garment production capacity, and are expected to be closed for 10 days -14 days. The company said it is already communicating with customers and may delay delivery if there are no positive results in other control and prevention areas.
According to Tianfeng Securities , Ningbo is expected to start work. The production base's production capacity accounts for 40% of Shenzhou International's total global production capacity. The suspension of production may cause a loss of 17 million pieces of Shenzhou's Ningbo garment production capacity, accounting for approximately 3% of the company's garment production capacity throughout the year. According to this data, Shenzhou's garment production capacity throughout the year. Or reach 560 million pieces.
It is worth mentioning that since the outbreak of the epidemic, Shenzhou International's overseas factories have faced long-term production suspensions. The semi-annual report shows that from April to May 2021, Shenzhou International's Cambodian garment factory suspended production due to the severe local epidemic. After July, the epidemic in Vietnam also worsened significantly. Due to the uncertainty of overseas epidemics, Shenzhou International relies more on domestic factories.
Shenzhou International stated in its 2021 semi-annual report that during the period, the company's domestic factories increased the number of new employees hired, and the human efficiency output was further improved. The output of domestic factories increased significantly, among which the output of ready-made garments was higher than that of the previous year. It grew by about 30% over the same period.In addition, Shenzhou International also stated in its semi-annual report, "The company introduced incentive policies during the Spring Festival to encourage non-local employees to celebrate the New Year on site and start work early, which is conducive to the control of the epidemic and increases production."
However, Recently, Shenzhou International’s major customers Nike and Adidas have stated that due to the impact of the Vietnam epidemic, the supply chain is under pressure, resulting in delays in the launch of new models and insufficient inventory. Will the Shenzhou Ningbo epidemic aggravate the situation? Cheng Weixiong, a brand management expert in the shoe and clothing industry and general manager of Shanghai Liangqi Brand Management Co., Ltd., expressed optimism, "Although there are certain risks, Shenzhou is not only There are Beilun bases, as well as Zhejiang Quzhou bases, Anhui bases, and Vietnam bases, which can hedge risks. "
Times Finance learned that after the outbreak, Citibank , Goldman Sachs , Tianfeng Securities, etc. have maintained Shenzhou International. "Buy" rating. Among them, Goldman Sachs lowered the target price of Shenzhou International, saying that the impact of the epidemic is not yet completely clear; Tianfeng Securities predicts that the short-term pressure on domestic garment production capacity caused by the epidemic may be compensated by overtime work during holidays.
